Falling inflation and an improving labour market are starting to put more money in consumers’ pockets, according to the latest Deloitte Consumer Tracker.
The two factors are underpinning consumers’ confidence in their level of disposable income, which remains stable for the third consecutive quarter (-18%), and is nine points higher than for the same period in 2013.
In the fourth quarter of 2014, fewer people suffered a reduction or a loss of income, and more said they had received a pay rise or bonus than a year ago (11% and 14% respectively, vs. 13% and 11% in 2013).